Welcome to Stop Debt America, your debt-free solution. If you are just beginning your journey on the road to a debt free life, you've come to the right place. Stop Debt America offers free credit help and advice, debt settlement information, credit news, tools and resources. Start here for your debt-free solution. Or, download the Stop Debt America debt settlement manual, a comphrehensive, step-by-step guide to help you become debt free and settle your unsecured debts for pennies on the dollar.
Download free reports from the Federal Trade Commission. Browse video and news stories to help you make informed decisions when it comes to your personal credit. From credit card debt to mortgage calculators you will find it here at Stop Debt America.
More often than not, consumers who turn to debt settlement are good people who are unable, rather than unwilling, to pay their debts due to financial hardship. Job loss, divorce or health problems have made it virturally impossible to become debt free and pay off debt
The US economic downturn has compounded the problem and resulted in record consumer debt of 2.6 trillion dollars. Even more troubling, consumers have fallen behind on credit card debt, personal loans and other unsecured debt at a record breaking pace—the highest since the American Banking Association began tracking the data in 1974.
As consumer debt reaches crisis proportions,the number of consumer debt relief programs has more than doubled—to over 2,000—spawning a surge in fly-by-night credit counseling, debt settlement and debt consolidation companies.
Although there are many legitimate companies offering debt settlement, debt relief and credit counseling services claiming to help you get out of debt, the Federal Trade Commission (FTC), Congress and States' attorneys are beginning to take a hard look at companies more interested in helping themselves than helping their clients get out of debt.
Make certain you choose the right solution for your situation on the road to becoming debt free, to help you get out of debt. Whether you are considering credit counseling, debt consolidation, debt settlement or even bankruptcy, choose wisely. Because your decisions could affect your financial well-being for years.
Choose the Right Debt Relief Solution
·Debt consolidation - Requires that you apply for another loan or debt consolidation loan. Nearly impossible if you have bad credit. The loan may have to be collateralized by use of the equity in your home, thereby taking your unsecured debt and turning it into high-risk secured debt. Debt consolidators already have a pre-arranged agreement with the consumer's creditors to help recover their own losses. Not a smart move and there is a good chance you could be forced into bankruptcy or worse. Unlike debt settlement, debt consolidation will reduce your monthly payment with a lower interest rate, however you will have to pay off the entire balance on your way to becoming debt free. Common sense tells us not to go into debt to get out of debt.
Debt settlement offers a better alternative to consolidation loans, credit counselling, bankruptcy or avoidance. By using debt settlement to reconcile debt, consumers can easily improve their debt-to-income ratio and have more control over the process of becoming debt free.
In fact, about 60 percent of your credit score is calculated based on debt-to-income ratio, while payment history accounts for only 40 percent of your score. Therefore, lowering your debt or becoming debt free utilizing debt settlement, also known as debt negotiation makes sense.
State and federal law prohibits abuse of consumers who are in debt. Know your rights and protect yourself against harassment, abuse and misleading information. Free downloads of the Fair Debt Collection Practices Act, Fair Credit Reporting Act and other reports are availabe in the Resources section below.
